Shares in Tesco fell 2p yesterday to finish on 327.25p following the supermarket group's first-quarter trading update.

Tesco recorded a 4.5% increase in first-quarter like-for-like sales excluding petrol and a 9% increase in total UK sales. Group sales increased 10.4%.

Analysts were disappointed that sales growth had declined. Sanjay Vidyarthi from Teather & Greenwood, said: “Asda is on a profits holiday and how long can Sainsbury increase its sales without widening its profits? If either of these two gets their act together, the one who stands to lose the most is Tesco.”